XRP REVERSAL PATTERN EXPLAINED!
Is it not just music to your ears seeing and hearing all the fear and treachery in the market, knowing it is all temporary due to cyclical market trends and is actually a huge blessing in disguise to those who actually understand this fact.
Back to the article, XRP and most of the market has been consolidating for some time now which is a great sign of indecision in the markets. The benefit is that the consolidation has formed on the support of a long term downtrend which gives confluence to the breakout being tipped to the bullish side. The trend is your friend until it ends, and my friend, it doesn't look like it has ended yet, however it has come to a gradual halt following a gradual end in the weeks to come. By saying the trend is almost over, i am not converting full bull with a $100 XRP, however the consolidation phase of the current market is shortly overdue so it makes sense. I shall be discussing further confluences to back my statement below:
Bullish head and shoulders: As seen in green the head and shoulder formation is mid way through its form, however needs to break and hold a few strong levels of resistance, those being $0.515 and $0.582 which are strong levels of resistance at the moment. Once the price moves above this level it will get pinched between the newly found support and existing trend resistance, from then on a break out is imminent based on the strong levels of support backing it. The head and shoulders pattern once formed it estimated to make the price reach levels as high as $1.23. This move will not be a straight line of course and is predicted to play its roll over the following weeks to come.
Moving average: At this very moment i have decided to use the 50 ema due to this indicator being a good short to medium term indicator of potential trend reversal, The price is pushing to converge the 50 ema which will strengthen confluence in the trend reversal.
MACD & RSI: The RSI is currently sitting at 40 which is not oversold yet but perfect to maintain a move to the upside without risking overbought territory. The MACD however on the volume side, has peaked its bullish volume and is reversing to the bears, however looking at the 12 & 26 ema on the MACD, they are steadily climbing bullish.
Thank you for reading up to this point, feel free to give your opinion on my article as well as your opinion on the current market.
Back to the article, XRP and most of the market has been consolidating for some time now which is a great sign of indecision in the markets. The benefit is that the consolidation has formed on the support of a long term downtrend which gives confluence to the breakout being tipped to the bullish side. The trend is your friend until it ends, and my friend, it doesn't look like it has ended yet, however it has come to a gradual halt following a gradual end in the weeks to come. By saying the trend is almost over, i am not converting full bull with a $100 XRP, however the consolidation phase of the current market is shortly overdue so it makes sense. I shall be discussing further confluences to back my statement below:
Bullish head and shoulders: As seen in green the head and shoulder formation is mid way through its form, however needs to break and hold a few strong levels of resistance, those being $0.515 and $0.582 which are strong levels of resistance at the moment. Once the price moves above this level it will get pinched between the newly found support and existing trend resistance, from then on a break out is imminent based on the strong levels of support backing it. The head and shoulders pattern once formed it estimated to make the price reach levels as high as $1.23. This move will not be a straight line of course and is predicted to play its roll over the following weeks to come.
Moving average: At this very moment i have decided to use the 50 ema due to this indicator being a good short to medium term indicator of potential trend reversal, The price is pushing to converge the 50 ema which will strengthen confluence in the trend reversal.
MACD & RSI: The RSI is currently sitting at 40 which is not oversold yet but perfect to maintain a move to the upside without risking overbought territory. The MACD however on the volume side, has peaked its bullish volume and is reversing to the bears, however looking at the 12 & 26 ema on the MACD, they are steadily climbing bullish.
Thank you for reading up to this point, feel free to give your opinion on my article as well as your opinion on the current market.
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